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Active Bond

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Dictionary Says

Definition of 'Active Bond'

A bond or other fixed-income security that is frequently traded on the New York Stock Exchange. Active bond orders are typically filled quickly due to the presence of higher demand from investors and generally have lower bid-ask spreads.
Investopedia Says

Investopedia explains 'Active Bond'

Active bonds are traded by active bond crowds, which are traders that buy and sell bonds that are frequently traded. This is different than bonds infrequently traded, which are traded by the inactive bond crowd. Because of the higher liquidity of active bonds, active bond traders are better able to dictate prices.

Related Definitions

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    Active Bond Crowd

    The name given to members of the NYSE and their specific bond trading departments that are acknowledged as frequent traders in active bonds.
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      The lowest acceptable limit as restricted by controlling parties. Floors can be established for a number of factors, including prices, wages, interest rates, underwriting standards and ...
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    • New York Stock Exchange - NYSE

      A stock exchange based in New York City, which is considered the largest equities-based exchange in the world based on total market capitalization of its listed securities. Formerly run ...
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    • Inactive Bond Crowd

      A group of exchange members who buys and sells bonds, that are infrequently traded. Limit orders placed by the inactive bond crowd, may take a longer period of time to fill, due to the ...
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    • Bid-Ask Spread

      The amount by which the ask price exceeds the bid. This is essentially the difference in price between the highest price that a buyer is willing to pay for an asset and the lowest price ...
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    • Liquidity

      1. The degree to which an asset or security can be bought or sold in the market without affecting the asset's price. Liquidity is characterized by a high level of trading activity. ...
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